Audit 409505

2025-003 Federal Agency: U.S. Department of Environmental Protection Agency Federal Program Name: Capitalization Grants for Drinking Water State Revolving Funds Assistance Listing Number: 66.468 Pass Through Entity: Wisconsin Department of Administration Federal Award Notification Number and Year: 4920-49 and 4920-51 – 2025 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement Affected: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement state that when a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined by 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: During our testing, we noted the City did not have adequate internal controls designed to ensure vendors were not suspended or debarred. Questioned Costs: None Context: During our testing, it was noted that the City was not reviewing vendors prior to entering a contract to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Cause: The City does not have controls related to ensuring suspension and debarment are verified prior to entering a contract with vendors. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend the City evaluate its existing policies and procedures to determine where additional enhancements should be made or now policies created. Views of Responsible Officials: There is no disagreement with this finding.